A Teesside hospital trust has shaved £8.9m off the amount it expects to be the red this financial year.
The South Tees Hospitals NHS Foundation Trust had envisaged a £29.6m deficit in 2022/23 as part of its planning for the financial year, an increase of more than £6m on the previous 12 months
Cash from NHS England is allocated to hospital trusts via newly set up Integrated Care Boards (ICB) which determine how regional funding is spent.
The North East and North Cumbria ICB has now received extra money because of inflationary pressures in the economy with organisations being invited to put in re-submitted financial plans.
As a result it has been agreed that the South Tees trust will now deliver a £20.7m deficit instead of the original £29.6m.
A report to the trust’s board of directors said the trust was being paid under a ‘block arrangement’.
In May the trust received more than £39m from NHS England along with £80m from clinical commissioning groups for patient care activities, with other operating income amounting to £7.1m.
Meanwhile, it spent £79.4m on staff pay and £52.2m on other operating expenses, including all costs related to operational delivery and the trust’s continued response to the covid-19 pandemic.
The trust, which made £13.1m in savings in the previous financial year, has said the costs associated with a Private Financial Initiative (PFI) on the James Cook University Hospital, in Middlesbrough, remain the largest contributor to its deficit position
It was put in place to finance the building and maintenance of the facility which opened in 2003.
Last year this cost £59m and the sums to be paid by the organisation increase every year until the final payment is due in 11 years time.
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